Apple Becomes First US Company To Hit $1.5 Trillion Market Cap

Apple has become the first US company that reached $1.5 trillion market cap and according to the investors and analysts, strong App Store sales, ARM chips-run Macs and a 5G iPhone this fall are the reasons for the surge in stock of the Cupertino-based iPhone maker.

At a current price of $352 per share and 4.3 billion shares outstanding, Apple's market cap hit around $1.53 trillion on Wednesday (10 June), reports Mac Rumors.

Riding on its growing services and wearables business, Apple may become the first company ever to touch the $2-trillion valuation mark in next four years, a top analyst forecast recently.

Apple was the first US company to cross the $1-trillion mark in 2018.

According to market research firm Evercore ISI, the Cupertino-based iPhone maker would also be the first firm to surpass $2 trillion, reports Barron's.

In the Wearables business, the analyst expects growth to $60 billion owing to the expansion of AirPods and Apple Watch. The Services business could grow to $100 billion in the next four years.

The analyst expects Apple to continue aggressively buying back stock.

"Apple would reduce its share count by about 1 billion shares in the forecast period, from 4.6 billion at the end of fiscal 2019 to 3.6 billion in fiscal 2024.

"At that share count, the market cap would hit $2 trillion if the stock price was just over $550," wrote Barron's analyst Amit Daryanani.

As iPhones sale dip amid supply and demand uncertainties, Services segment is following a different trend for Apple, with strong year-over-year growth of 17 per cent and setting a new all-time revenue record of $13.3 billion in the company's March quarter results this year.

The company saw all-time records in many of its Services categories - App Store, Apple Music, Video, cloud services, its App Store search ad business, AppleCare, Apple TV Plus, Apple Arcade, Apple News Plus and Apple Card.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)